Twilio Inc TWLO shares are trading higher in Tuesday’s after-hours session after the company reported better-than-expected financial results for the third quarter.

• Q3 Revenue: $1.13 billion, versus estimates of $1.09 billion

• Q3 EPS: $1.02, versus estimates of 85 cents

Third-quarter revenue was up 10% year-over-year. Communications revenue came in at $1.06 billion, up 10% year-over-year. Segment (formerly Data & Applications) revenue totaled $73.4 million, flat on a year-over-year basis.

Twilio had more than 320,000 active customer accounts as of Sept. 30.

The company said it generated $204.3 million in operating cash flow and $189.1 million in free cash flow during the third quarter.

“Twilio continues to operate with financial discipline, operating rigor, and focused innovation, which has enabled us to deliver a strong third quarter of double-digit revenue growth and solid free cash flow generation,” said Khozema Shipchandler, CEO of Twilio.

“Twilio is uniquely positioned to bring the power of communications, plus contextual data, plus AI together to drive better customer experiences. Our continued product innovation and the outsized outcomes that we are delivering for customers illustrates our ability to be a winner in the age of AI.”

Outlook: Twilio expects fourth-quarter revenue to be between $1.15 billion and $1.16 billion versus estimates of $1.15 billion, per Benzinga Pro. The company anticipates fourth-quarter adjusted earnings of 95 cents to $1 per share.

Twilio expects full-year organic revenue growth of 7.5% to 8%. The company anticipates a full-year free cash flow of $650 million to $675 million.

Twilio noted it repurchased $2.7 billion of its stock since the company’s board approved a buyback earlier this year. Twilio plans to complete repurchases under the $3 billion buyback authorization by the end of the year.

TWLO Price Action: Twilio shares were up 9.11% after hours at $77 at the time of publication Wednesday, according to Benzinga Pro.

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Photo: Collision Conf from Flickr.